The Best One Yet - 🤑 “2nd house gets 3rd boat” — Goldman’s record bonuses. Amazon’s 1st Style Store. Big Tech’s favorite child.

Episode Date: January 24, 2022

You heard a lot about “The Great Resignation” in 2021 — But seeing Big Bank bonuses, we’re thinking “The Great Raise” could be next in 2022. Amazon is whipping up its 1st physical clothing store that wants to be your shopping BFF: Amazon Style. And a bill just passed a vote in the Senate that tell Big Tech they can’t play favorites with their own stuff anymore (Apple can’t be the coach and let its kid play shortstop, too).$GS $JPM $AMZN $AAPLGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Monday, January 24th. Welcome back, people. I'm just glad last week's over. Oh my God. I think I'm going to go in a hole somewhere.

Was last week the week every pandemic winning stock became a pandemic loser? Jack, I'm pretty sure five days of pain to raise two years of stock price gains. Doesn't matter. I've forgotten about it. It's over. This pod is the best point. It's a TBOI. But Jack, should we tell the Peloton CEO or ideas for Peloton?

The Minivations? Oh, I thought you were talking about the maple syrup rack. I know the minivations. Just do what Don Dish soap did and just like make the screen a little bit bigger and the handle part. It's a little bit thicker. I think they need a little bit more than a minivation. They're going to need more than a minivation.

Jack, what's our first story? Amazon is finally doing it. Amazon's first clothing store is coming to Los Angeles. Amazon style isn't just an oxymoron. It's actually their new physical clothing store. And it's a thing. For our second story, we just got leaks on bonus season for the big banks. Spoiler?

It's a big one. It's a big bonus season. Snackers, the great resignation, it could lead to the great raise. And our third and final story is about favoritism, specifically no favoritism. Here's the deal. If Big Tech wants to be the coach, then they can't let their kids who can't even field play shortstop. Snackers, we got the first bill to rain in Big Tech, and it just passed the first vote in the Senate. But Snackers, before we hit that wonderful mix.

A wonderful mix of stories to kick off the week, Jack. We're opening it up to Horters Almanac, page, sorry, I mean week 96. We're getting close to 100. Are you excited? I'm not excited because the shortage just they're getting stressful, but we never seem to run out of them. Snackers, things were running out of because of the pandemic. Jack and I have been keeping track for you for 96 weeks. We're now running out of orange juice. Hey, Ma, we're low on OJ. Fresh squeezed, concentrate in the freezer. We're out of it. Yeah, low pulp, some pulp, lots of pulp. We're out of it. My take on OJ, it's surprisingly tasty when washing down peanut butter toast. Yeah, I agree with you, Jack. I agree with you there.

but it is also surprisingly self-conscious about its very own orange juice calcium and vitamin D levels. Yeah, your OJ is like yelling at you that they got 500% of your daily calcium needs. The font showing calcium is literally bigger than the font saying orange juice. This shortage, however, is interesting because there's both lower supply, but there's also lower demand. Snackers, rarely did you see this kind of a combo? First of all, we got ourselves the worst orange crop since World War II. We harvested the fewest number of oranges this year than since 1945. Yeah, back before the word juice cleanse was even a term.

The reason? Florida. Florida is orange juice country. They make 90% of our oranges. Yeah, and it's not your fault, Florida. We're not blaming you, Florida. But the Sunshine State's got a citrus disease that's killing off the big oranges, specifically the big ones.

So that's why supply is down. But demand of oranges is also near an all-time line. You turn that juice carton around and that big, scary sugar number, it's freaking out Zillenials. Nowadays, you're not washing down your peanut butter toast with orange juice. No, you're not. You're like chomping your assaye bowl with an oatmeal latte. Yeah.

Hey, Ma, I said no minute base. So that disease means we have smaller oranges. So you need to squeeze more of them to get the same amount of orange juice. Awkward, even though people don't even want the juice in the first place. And since this all jacked up orange juice prices by about 50% since the start of the pandemic. The juice is literally not even worth the squeeze. Hey, ma. Yeah. Let's hit our three stories.

The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robin Hood family. It's all informational just so. You know, we're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible.

Business news for you. Robohood Financial, LLC, member FINRA slash SIPC. For our first story, it is finally official. Amazon is launching their first ever clothing store. Get this, the name, it's Amazon style. That's all they could come up with. But the truth is, Amazon hasn't figured out its own style. First of all, Jack, Prada, Valenciaaga, Gucci, Pucci, Bezos.

Well, in September Snackers, Jack and I were telling you about how Amazon reportedly was disrupting the changing room with a planned department store. It was kind of interesting. Well, now it's official. It is because Amazon announced last week, Amazon Style coming to Glendale, California. It's like right outside of Pasadena, just east of Highland Park. Yeah, you're at the beach. You go east until you hit the mountains and then stop and get some tacos and then keep going. You'll get there.

It's in Glendale. If you do hit the mountains, then you've gone too far. Now, Amazon Style is going to offer men's and women's apparel plus shoes and accessories. And there's a wide range here because you can get like the $4 basic tea for Wiffleball, but you can also get the $400. He'll for that Catalina wine mixer. And shocking, separate but relevant news. Last year, Amazon surpassed Walmart to be the biggest clothing retailer in the whole country.

Yeah, sit down, stand up and sit back down again. Snackers, get this. Amazon, they sell $41 billion worth of clothes every year. And in a separate report, one out of three millennials begin their shopping experience when they go clothing shopping on Amazon. They don't like go to a store or check out their favorite website. You're not heading J.Crew first. You're going to Amazon.com to begin the journey.

So Amazon entering physical fashion, big deal. So Jack and I didn't jump in snack style because this isn't Bill yet. But we can tell you that the experience of the Amazon style store, it's less like a store. And it's more like a 30,000 square foot website page. Like a website, you're only going to see one shirt. So let's say you like the turtleneck. You'll notice there's just one turtleneck there. And the reason there's one turtleneck is because the rest are in the back.

You only see one turtleneck, one color, one size. But there is a QR code. And if you scan that, Amazon's going to tell you what sizes and colors are available, what the reviews look like, so you can pick your favorite color and size and send it to the dressing room. Yeah, your phone tells you when your room is ready. You skirt on over to the back. Next thing you know, that turtleneck in the medium size is waiting in your dressing room. It's either magic that got the turtleneck there or an Amazon contractor probably. And as you float into that changing room, a smart screen is going to let you summon the size large because the size medium was a.

close call. And you're more of a size Marge anyway in between. And so you kind of want something different and you don't want to talk to someone so you just summon it. You or your friend who had that problem. I just think they haven't nailed to sizing it. That's all I'm trying to say. All right. So once you get the slamming sandwich turtle neck, that's the right thing. You can just walk right out of the store. Just make sure you display your palm because they're going to scan that for payment. Now, the key here is that after just one visit, Amazon style, it knows you or as Amazon wants to say, they know your style. They're going to use that data to recommend something next time.

So Snackers, this is a reimagined retail fashion experience. Amazon really wants to get you in some quarterways to match that turtleneck. So, Jack, what's the takeaway for our buddies over at Amazon? Amazon doesn't move fast and break things. They move slow and test things. Snackers, Jack and I look back at Amazon's history and physical retail. This is the world's slowest experiment. It started seven years ago when they launched their first bookstore.

Two years later, they acquired Whole Foods in all 471 grocery stores. Yeah, 2018, Amazon launches Amazon Go stores. 2020, they launched fresh grocery stores. 2022, they do this. It's been a seven-year journey. They have 600 store locations in North America now, totally different experiments with each one and no real results to show for it. Get this snacker, sales at Amazon's physical stores,

they've been flat since 2018 before the pandemic. So now Amazon is launching Amazon style because they don't know their style yet. Once Amazon does figure out their style, Jack, what do you think is going to happen? Get ready. Once they figure out their recipe for Amazon physical retail, they're probably going to scale it fast. Until then, it's move, slow, and test things. And then scale the heck out of it. For our second story, it is almost that magical time of year, big bank bonus season.

And Jack and I just got a preview. It looks like the great job resignation could lead to the great pay race. Jack, you know it's bonus season when we see our buddy Timmy and he's like, hey, you like my new suit? It's Italian. I got it in Italy yesterday. And then he still Venmo's here for that Metro card swipe you did yesterday. Snackers, banks. They just reported earnings like over two weeks ago.

But the bonus number is that's the interesting stuff. And that just leaked to CNBC. Timmy's a great guy. We like to give our buddy a hard time. He's a good guy. Goldman Sachs was up first. Jack, the Goldman numbers, if you will, what are the number? Well, Goldman has 400 partners. Those are the highest ups at Goldman who take the biggest chunk of profit as a bonus check. And the partners over in tech and healthcare units are getting checks

for $12 to $15 million individually, according to some PFWTMs. Jeez. Yeah. Not too shabby. We were working at banks. We were not at this level. Yeah. And the MDs who are one rung down in the corporate hierarchy, they're taking home five to seven million. Oh, and according to those people familiar with the matter, they're also getting special one-time multi-million dollar bonus rewards in addition to those bonuses. It's a double bonus. All right. Those are the high ups at Goldman. But for the much larger investment banking division, overall bonuses are reportedly jumping 50% this year. Now, that's downtown over 200 West Street.

But over in Midtown at JP Morgan, bonuses overall jumped nearly 40% too. CEO Jamie Diamond got his highest pace since 2008 with a $3 million raise. Snackers. To sum this all up, this was the highest bonus season in a decade. We're talking numbers we haven't seen since Vineyard Vineyard's ties were professionally acceptable. We're pretty sure the socially distant tables at Carbone are completely booked out by Stanley Morgan and Morgan Stanley. Jack, I heard some second houses are about to get some third boats. Yes, they are. Now, let's whip out the Bloomberg machine and go even deeper because not every bank roll gets paid the same. Exactly. Because, you know, like Sarah, the stock trader, she didn't get as big a bonus this year as

her buddy Beth over an investment banking. Right, because the investment bankers worked their butts off last year on IPO deals, bringing companies public. And in 2021, you know, it just happened to be a record year of initial public offerings. From Bumble to allbirds, from Spacks to Sweet Green. Yeah, Jack, remember, we could always tell how many IPOs were happening by like the number of seamless late night Westville orders that were in the trash can. And the biggest bonuses go to the people who made the most money for the bank. So it was the investment bankers who got the biggest bonuses this year. Yeah, tonight's tab is on Beth in Investment Bank. And you might be thinking, aren't all those stock prices of the 2021 IPOs down this year?

Yeah, they are, but that doesn't matter for the bank bonuses. Because those investment bankers, they get to take the fees on IPO day before those stocks happened to have dropped. And they shared the spoils of those big fees with the whole team that was on the deal. So, Jack, what's the takeaway for our buddies with the big bank bonuses? Will the great resignation lead to the great pay raise? Snackers, the theme of 2021, you heard these words all day. Great resignation. Your friend quit because they retired at the same work and same pay. From Burger King to Bank of America, employers overall are scared that their staff is going to bounce.

Now, your boss could give you a new title or could give you a new perk or could give you new responsibilities. But we'd probably all just prefer more pay. Yeah. Companies are enjoying record profits right now and they're under pressure to offer record raises too. And that's already happening at Walmart where the average hourly wage is up to 1640, which is more than than double the federal embarrassingly low minimum wage. Yeah, the great resignation, that was the term of 2021. But the great raise, that could be the term of 2022. For our third and final story to kick off the week, Snackers, there is a new shockingly bipartisan bill in the Senate and it is targeting the five big tech companies in a way we've never seen. Here's the plan. Ban favoritism. Jack, are we going to talk

about the old parent coach problem? We're going to get there. We're going to get there. Snackers, there's been a backlash against big tech for years now. Years, epic. But what is Congress done about it? They've basically done nothing. They've made speeches, but there has not been any legislation getting any votes. Until last week, which is why Jack and I were fascinated by this very particular bill that's reigning in big tech and just passed the Senate Judiciary Committee. 16 yeses and six knows.

This thing actually has a chance of becoming law with that kind of bipartisan support. It's like, I'm a bill, I'm a bill, and I'm actually liked by Republicans. and Democrats on Capitol Hill. It's called the American Innovation and Choice Online Act. Okay, they need to work on the name. Is there an acronym in there, actually? There isn't. AICOA.

It needs a rebranding, hire an agency. Now, this is going to the Senate next, and we'll see what happens, but it currently has bipartisan support. And here's the focus of the bill. The parent coach problem of tech platforms. The parent coach problem. Basically, Snackers, this bill, it's going to ban favoritism in big tech. Let's start with Apple. is a platform. Yeah, you shouldn't steer iPhone users to your own Apple music over Spotify,

for example. All right, let's look at Google. They own YouTube. If you Google the words, perfect scrambled eggs, Google shouldn't just show you a YouTube video instead of like some other companies video. And Amazon is also a platform. It's the ultimate retail shopping platform. Tube socks shouldn't show up as an Amazon basic search number one when there's plenty of goods, classic Haynes options out there. All right. Now, Apple Music, the YouTube video about scrambled eggs, and the Amazon Tube Sox, those could be number one. They could be. They're good.

But only if they deserve to be number one, not just because they're the coach's kid. Yeah, because you've been there. Second grade, I don't know, Little League, you're wondering why someone's playing shortstop. Chances are it's the coach's kid. It is. What's going on? Who's batting clean up and hitting shortstop? Jack, I know you're thinking of someone right now, but you're not going to say that kid's

name, but everyone on the team was like, yeah, we don't know. We know who you're talking about. Danny B. Okay. Danny B. You're basically giving it away now. Snackers. the tech platforms, they're like parent coaches.

They get to decide who gets to play the game, even if someone doesn't have that strong right hand. They got kids on the roster, and that's an obvious conflict of interest. Yeah, Snackers, if those coaches have kids playing on the team, then they can't play favorites. That's what this bill does. Now, Tim Cook of Apple and Sunder Pichai of Google, they're a little worried right now by this thing. They've reportedly personally called a bunch of senators on this committee asking them to vote And the reason they're kind of freaked out is because this bill specifically singles out their

companies like Apple and Google along with a couple other tech giants. This bill only applies to companies with a market cap, a worth of more than 550 billion and with 50 million monthly active users or more. That's like six companies total. That's it. Right. So this bill has a whole bunch of new rules for Apple and Google, but nothing new for Walmart or Roku. So, Jack, what's the takeaway for our buddies dealing with the parent-co?

problem. The most powerful tool of commerce is the search bar. Search decides all. And the tech platforms control our search bars. Yeah, the app economy is enormous, but it's controlled by Apple's App Store search. The internet is more broadly controlled by both Google and by Facebook, because they have search bars. And shopping online starts with an Amazon search. Being number one or number two in those search results, that is everything in this economy. Yeah, Jack and I jumped in Snacks file. We found like plenty of studies that show about 50% of consumers click number one or number two in a search result.

That's it. And you don't need a study to know that you haven't clicked to page two of the Google search results since like 2006. Yeah, Jack, when you did, that was a mistake. This law basically regulates the search bar. Because what the tech companies put at the top of the search results gets the money. Jack, can you and the Amazon turtleneck whip up the takeaways for us

to start the week? Amazon style is Amazon's latest experiment in physical retail. They're moving slow and they're testing things. For a second story, big banks are paying bonuses up about 50% from last year. The great resignation could lead to the great pay raise.

For our third and final story, the Senate Judiciary Committee passed a bill to regulate the search bar. Because search decides all. Now, time for our snack fact of the day, which is kind of a snack trivia of the day from our buddy Ben Massenberg over in Maui, Hawaii. What are the two states who have never recorded a temperature over 100 degrees? Fair enough.

Okay. So I saw the answer. You didn't see the answer yet. What do you think the answer is? Well, I immediately went to Alaska. But then this past year, Washington State hit like 117, right? Yeah. So you're questioning Alaska and saying your head. I'm questioning Alaska. So what do you think now? I'm going with Minnesota. Okay. It's cold. I've seen the Winter Classic. And Wyoming. No, no, no, not Wyoming. Minnesota, Minnesota and Montana.

Are you sure? But are you sure you're sure? No, I'm not sure. Okay. Snackers, the two U.S. states that have never recorded a temperature over 100 degrees Fahrenheit are Alaska and Hawaii. Hawaii was the first thing I thought of. Oh, it was the first thing.

I told you I thought it was Hawaii. Both states technically have hit 100 degrees, but that was before they legally became U.S. states. Oh. It's a snack fact that messes with. your head. Oh, it's in your head. Wait, so Hawaii's gotten cooler? All right, you're asking too many questions now. Snackers, you look fantastic to start the week. Honestly, Jack and I are so impressed. Jack and I would love, if you'd ask a friend, hey, you know, H-Y-H-Y-S-D. They're going to say, what's that mean? You say, have you had your snacks daily? It's the best pod. That's how we

grow this pod. And if you know, you know. Nick and I'll see you tomorrow. Can't wait. And before we go and stock up on orange juice, congratulations to Snackers Hamali, Renate, and Carl Deerking, who actually worked together to invent the Dawn Easy Squeeze bottle that we were talking about on this podcast just last week. It's like the ketchup pot. The innovations. These people do the innovations. Great work, guys.

And congrats to Ashley Meiser, who just adopted another dog down in Tulsa, Oklahoma. I think we shouted out her first dog. And welcome to Professor Ross Hornish's marketing class to Rhodes College. Enjoy this semester. He's a great professor. Congratulations to Jazz and Nate Parker for getting engaged down in Atlanta. And Jacob and Megan, they also got engaged down in Kavo. Guys, said this the ring picks.

Congrats to Yvonne Iristando from Lima, Peru, who just got a job offer at Deloitte here in the States. And congrats to Ivan, who just had his first day on the new job at Lucid Motors in San Francisco. Congrats to Aaron Hayes, who's starting business school at UNH. And Utsav Meda, enjoy that new job kicking off over at Credit Karma. Happy birthday to Cesar Hernandez in Mount Airy. And Trevor Marlar over in San Antonio. Happy birthday, Elena. killer in New Canaan, Connecticut. And Joe, enjoy that 50th over in Queens. Happy birthday and retirement

to David Medlock in Rome, Georgia. And to anyone else celebrating something today, make it a T-boy. Celebrate the wins. This is Jack. I own stock of Amazon and Roku. Nick own stock of Apple. Nick and I both own stock of Pellator. And we both own stock of Spotify. Robin Hood Snacks, newsletters, and podcast reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve on the basis for

any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. Hey, Ma, we're low on OJ.